German Vehicles Indices

The dedicated analysis tool allows members to slice and dice the INREV German Vehicles Annual Index and INREV German Vehicles Quarterly Index universe and create their own tailored indices, as well as, to compare their vehicles against INREV indices or customised indices.

German Vehicles analysis tool

Performance is calculated using the Modified Dietz methodology. This methodology is used to calculate annual and quarterly net asset value fund performance.

The total return measures the performance over a specific period and does not include projections to the end of the fund’s life.

The total return is computed as follows:

$$ NAV_t - NAV_{t-1} - contributions + redemptions + distributions \over NAV_{t-1} + TwdC - TwdR - TwdD $$

The capital growth is computed as follows:

$$ NAV_t - NAV_{t-1} - contributions + redemptions \over NAV_{t-1} + TwdC - TwdR - TwdD $$

The distributed income return is computed as follows:

$$ ∑distributions \over NAV_{t-1} + TwdC - TwdR - TwdD $$

Further information about the INREV German Vehicles Annual Index and the INREV German Vehicles Quarterly Index can be found in the Index Guide, for more information about Performance Measurement visit the INREV Guidelines on Performance Measurement. 

Data is collected via the INREV Data Platform, where users are able to register their vehicles and provide quarterly financial data. The system runs a number of validations to ensure the quality of the data received, eg users are asked to approve data before submission to INREV.

How is data validation carried out?

Data validation is carried out in a three step process:

1. Systems based validation – the system uses a rules-based algorithm to validate data.
2. Member approval – the member needs to approve the information before submission to INREV
3. INREV verification – the INREV team verifies information before inclusion to the index

How is data confidentiality managed?

INREV does not disclose or share any fund level performance data.

INREV only uses performance data in a composite where the vehicle and the manager are not identifiable.  

What type of returns are measured on an index level?

Quarterly and annual performance is measured by time weighted returns over the measurement period. Income return, capital growth and total return are calculated for the measurement period.

1.    What are the German Vehicles Annual and Quarterly Indices? 
The German Vehicles Annual Index and German Vehicles Quarterly Index that cover the performance of Germany domiciled real estate investment vehicles. 
 
The performance is reported on an annual basis for the German Vehicles Annual Index publication and on quarterly basis for the German Vehicles Quarterly Index publication.

2.    Do you have to be an INREV member to be part of the index?
Data contribution to the German Vehicles Annual Index and German Vehicles Quarterly Index is on a voluntary basis, both INREV members and non members can provide data for the indices.

Access to the German Vehicles Index publications and the German Vehicles Analysis Tool, is available to memebrs only. 

3.    Who can join the German Vehicles Annual Index and the German Vehicles Quarterly Index?
Fund managers with an investment vehicle domiciled in Germany are welcome to participate in the indices by providing their vehicle data via the Data Platform. 

No fees are requested to participate in the Index.

4.    Can we see the individual vehicle performance data available in your platform?
No. Performance data is only available at  an aggregate level. Individual vehicle performance data is never disclosed and cannot be accessed by any external party.

5.    How can we join the Index?
To join the Index please contact data@inrev.org

Index specifications

1.    What are the criteria for German Vehicles Index inclusion?
The German Vehicles Index includes the following assets:

• Vehicles domiciled in Germany only
• Both retail and institutional vehicles 
• All styles are included, core, value added and opportunity
• All vehicles are included, funds, separate accounts, joint ventures and club deals
• The Annual Index includes annually, bi-annually and quarterly valued vehicles
• The Quarterly Index includes quarterly valued vehicles 

2.    Is the index frozen or unfrozen?
The German Vehicles Indices are unfrozen indices, which means that historical data can change with future updates.
 

3.    Can this index be used for derivatives?
The German Vehicles Annual and Quarterly Index cannot be used for derivatives, due to the Benchmarks Regulation (BMR) which entered into effect on 1 January 2018

4.    What type of data are the index results based on?
The Index results are based on vehicle level data that is provided to INREV directly by fund managers. INREV does not use publicly available information, and both INREV members and non members can provide data for the indices. Due to tight reporting deadlines, some data, eg quarterly NAV, might be provided on a provisional basis for a given quarter and will be finalised in the next quarter. 

The German Vehicles Annual Index includes annually, bi-annually and quarterly valued vehicles.

The German Vehicles Quarterly Index includes only quarterly valued vehicles.

5.    What happens when a member stops contributing data, would their vehicle data remain in the index?
When a member stops contributing their data to the Index, this data will remain in the Index ending at the last date of contribution. As with other INREV indices, the historical data will be kept in the index to ensure continuity.

6.    Is the index equally weighted or value weighted?
German Vehicles Index is value weighted, meaning that larger vehicles have bigger impact on the performance of the index. 

7.    What is the frequency of data reported in this index?
German Vehicles Annual Index includes vehicles that are reported on a quarterly, semi-annual and annual basis.

German Vehicles Quarterly Index includes vehicles that are reported on a quarterly basis.

8.    What are the confidentiality rules for this index?
Performance for any index or sub-index is reported only when the sample includes at least 3 vehicles from 3 different companies.

9.    How is currency conversion dealt with when calculating returns?
To calculate aggregate returns, a local currency methodology is used. All figures that are reported in currencies other than the Euro are converted using the exchange rate of the first day of the quarter for the quarterly indices or the  first day of the year for the annual indices. This is to ensure that no currency effect is taking place at a fund level. Please note that the currency fluctuations that take place at a property level are embedded in the fund reported values and are outside the scope of local currency conversion.

10.    If I wanted specific data on a certain region, can I do this with the INREV Indices?
Yes, from vehicle allocation to performance measurement, our analysis tool allows peer-to-peer and market comparison. INREV members have access to our German Vehicles analysis tool which allow  members to slice and dice and  make their own tailored indices.

11.    Does INREV collect historical data?
INREV encourages fund managers to provide the historical and current data of their vehicles. The research and market Information team can support and facilitate historical data collection. To provide data, please contact data@inrev.org

12.    How is data collected?
Data is collected via the Data Platform, where members are able to update their vehicles using a user-friendly interface. The system runs validations to ensure the quality of the data received. 

Members are asked to approve data before submission to INREV.

13.    When should we provide and update the data?
Annual-Data collection starts immediately after a year has ended for a period of up to 12 weeks. 

Quarterly-Data collection starts immediately after a quarter has ended for a period of up to 6 weeks.

Funds can provide estimates if final data are not available by the deadline. In this case, provided data can be amended after the publication date and will be restated in the next publication.

14.    How is data validation carried out?
Data validation is carried out in a three step process:

1. Systems based validation – the system will use rules-based algorithms to validate data
2. Member approval – the member will need to approve information before submission to INREV
3. INREV verification – the INREV team will verify information before inclusion to the database

15.    What calculation methodology is used to calculate performance?
The German Vehicles Annual and Quarterly Indices measure net asset value performance of non-listed real estate vehicles domiciled in Germany on an annual and quarterly basis, respectively. Performance is measured net of fees and costs at investment vehicle level.

Performance is calculated using the Modified Dietz methodology. This methodology is used to calculate annual and quarterly net asset value vehicle performance.

The total return measures the performance over a specific period and does not include projections to the end of the vehicle’s life.

The total return is computed as follows:

$$ NAV_t - NAV_{t-1} - contributions + redemptions + distributions \over NAV_{t-1} + TwdC - TwdR - TwdD $$

For more information about Performance Measurement visit the INREV Guidelines on Performance Measurement. 

16.    When was the Index launched and when does the data date back  to?
The German Vehicles Annual and Quarterly Indices were launched in 2016 along with an accompanying index analysis tool with the support of BVI, the German Investment Funds Association.

The German Vehicles Annual Index is now published on the first Wednesday of May each year. The history of the Index dates back to 2001.

The German Vehicles Quarterly Index is now published 9 weeks after quarter end. The history of the Index starts at Q2 2000.

17.    What currency is required for data submission?
Data are reported in vehicle’s reporting currency.